Warehousing itself could be seen as a niche market behind the scenes with so many functions that it could benefit from being done more efficiently.
This is especially true since managing one entails juggling various responsibilities, which may overwhelm managers and business owners with their day-to-day operations.
But thanks to various technological advances, overseeing and managing warehouse activities has become more convenient and less complex. Businesses worldwide have implemented management systems that would assist their staff to be more productive and for the company to thrive.
What Is a Warehouse Management System
Essentially, a warehouse management system aids in streamlining tasks such as receiving, registering, and storing products and inventory with intelligent functions. These systems can simplify your organization’s workflow, resulting in higher productivity and efficiency rates. By integrating robust WMS software into your operations, you can streamline inventory management, optimize warehouse workflows, and achieve greater accuracy in order fulfillment.
As such, using this technological advancement to your business’s advantage would be ideal. Finding the correct application that matches your company’s needs and requirements can be a great start.
To help you get started, this article will outline some of the essential features to look for in a warehouse management system.
1. Scanner Compatibility
Most goods and products received in a warehouse are scanned by barcode scanners to add and register them to the inventory. When large amounts of goods are processed daily, scanners can make the receiving or dispatching these items faster.
Depending on the size of the operation and the type of products handled by the specific warehouse, the scanners could be handheld or operated with other machinery, like conveyor belts, for even faster processing. These scanners would read the barcodes on each product, which would differ from product to product.
Some warehouses use a two-in-one process that includes an automated dimension measurement tool that records the dimensions of the received goods and the barcode. This information would have to be processed and stored, and the warehouse management system would assist.
When purchasing or implementing such a system, the company should ensure it is compatible with its scanners and other equipment to integrate everything.
2. Real-time Data Processing
A warehouse’s primary function is to store goods until customers need them. So, once a purchase order is received, the products can be dispatched and delivered to the customer.
Usually, the company’s sales representatives send a purchase order to the warehouse to assemble the correct goods for delivery or collection. However, the purchase order can only be processed and pushed through when there’s sufficient stock in the inventory. And that’s where accurate records come in. However, the correct information would be available only if the system operates in real-time. The database will present all the available items, making finalizing the orders and dispatch easier and less complex.
More so, receiving new stocks would also be recorded in real-time, so there is a constant flow of products visible on the system. As such, the availability of information becomes very important for the other departments that could have access to these figures.
3. Inventory Location Control
Thousands of items could be received or dispatched from a warehouse anytime. The sheer volume of goods handled would indicate that a solid management system would be needed.
Planning the warehouse space and ensuring that all similar items are systematically stored together would be one of the tasks a sound warehouse management system would efficiently perform. The warehouse management system would have all the goods identified, their location recorded, and storage requirements considered.
Knowing where everything is located in a massive warehouse would make it easy for employees to find. Instead of remembering where everything is, staff could access the various items swiftly.
4. Products Picking And Packing Possibilities
The picking and packing items for a customer’s order is just one of the complex processes that aren’t prone to errors. For instance, goods need to be put together as one order, and picking the various items and putting them together in the best possible way before packaging them to ensure they arrive safely can be lengthy and tedious.
Additionally, packaging should be done according to the specifications of the product. When a product is fragile, more packaging material would be required, and cold shipments should be packaged to prevent an increase in temperature.
As such, the warehouse management system could be most helpful. The warehouse management system could note the specifications of each order and its packaging requirements, giving instructions and directions to the warehouse staff.
5. Improved Product Tracking And Monitoring
Sound warehouse management software should allow you to track and manage your resources. This means that you should be able to monitor how your product moves. This includes arrival at the warehouse, the staff who received and stored the products, internal and external transactions, order picking, dispatch, and even up to the step of your product being delivered to your customer.
This feature can significantly help you assess your operations, allowing you to see which areas in your organization need revisiting and reorganizing. For instance, you can monitor how fast or slow dispatch is. From there, you can make a more informed decision on further improving your processes, thus enhancing productivity and efficiency.
6. Can Be Integrated With Financial Software
The billing department would have to keep track of all the financial aspects of the business. Expenses, income, profit, loss, and other economic indicators could provide valuable information to the management team.
When the warehouse management system can be integrated with the financial system, it can make for a smoother operation between moving products and the invoices and statements needed for these items.
More so, as a safety measure in a warehouse, no products will be moved, picked, or packed without a valid purchase order and invoice for the client. Some companies have a policy to receive payment before the goods are shipped, whereas other clients may have accounts. The billing department would need access to figures from the warehouse to keep track of all this information and properly process all the orders and payments.
In addition, the billing department would keep tabs on other information, such as purchasing the goods. Companies would have to buy or produce their stock for sale. Goods purchased or brought into the warehouse need a purchase order to accompany them. Integrating financial and warehouse management systems makes the task easier for all.
7. Can Generate Various Reports
A sound management system for any department would have to have analytics options for generating reports. These reports are necessary for any business to ensure that all the figures add up and the company is doing well.
Access to on-demand reports would benefit the business, and staff could send these reports to line managers when they request them. Delivery reports, shipping inventories, return documentation, picking, and packing lists. Various other pieces of information could be ordered from management, and a warehouse management system should be able to provide it effortlessly.
8. Can Be Customized
Each business has its operational necessities. This includes workforce management, product handling, and workflow policies. As such, an efficient management system should be in place.
Some of the best software options on the market have customization opportunities where companies could ask for certain software parts to be adapted according to their business’s needs. This means they could be successfully added to the warehouse management system instead of running various software programs or having manual processes for some functions.
More so, some software generally has options for customization, or they could specialize in a specific niche to help companies with the functions they would need for their operations. There could also be different packages to choose from that would supply more or fewer functions according to the budget and needs of the company.
9. Connection To The Cloud
Information storage, communication, and many other things can now be done through the cloud in a digital era. A warehouse management system that could operate with the cloud would be ideal for companies that want an instant connection to their system from anywhere.
Warehouse staff would not be part of the remote workers, which is understandable. However, other members of the organization working remotely would still need access to the system to complete their tasks—for instance, members from departments such as billing and sales. Sometimes, the management team may be stationed in a different country than the warehouse. For these reasons, cloud connectivity is essential.
The Takeaway
Companies all function uniquely, even though some operational aspects may be similar. And at the end of the day, the goal is to be more efficient and productive in their operations. But managing the heart of business operations shouldn’t be something that causes more stress than joy. As such, having a sound warehouse management system can significantly help business owners achieve seamless and streamlined warehouse processes.
Considering the above features can be a good start in guiding you when looking for sound and reliable warehouse management that meets your business’s needs and requirements.
Frequently Asked Questions
What is a Warehouse Management System (WMS)?
A Warehouse Management System (WMS) is a software application designed to support and optimize warehouse functionality and distribution center management. These systems facilitate management in their daily planning, organizing, staffing, directing, and controlling the utilization of available resources to move and store materials into, within, and out of a warehouse while supporting staff in the performance of material movement and storage in and around a warehouse.
What features should I look for in a Warehouse Management System?
Some essential features to look for in a warehouse management system include scanner compatibility, real-time data processing, inventory location control, product picking, and packing possibilities, improved product tracking and monitoring, integration with financial software, the ability to generate various reports, customization options, and connectivity to the cloud.
Why is scanner compatibility important in a Warehouse Management System?
Scanner compatibility is crucial because it allows faster processing of goods in a warehouse. It lets you register and add items to your inventory quickly and efficiently, making the system more productive.
What is the importance of real-time data processing in a WMS?
Real-time data processing is essential in a WMS as it keeps the inventory data accurate and up-to-date. This can significantly streamline order fulfillment and prevent issues with stock availability.
Why is inventory location control necessary in a WMS?
Inventory location control in a WMS is necessary for efficient space planning and item storage. It ensures all similar items are systematically stored together, making it easy for employees to quickly find what they’re looking for.
How can a WMS improve product tracking and monitoring?
A robust WMS should allow you to track your resources comprehensively. This feature can significantly help you assess your operations, allowing you to see which areas need revisiting and reorganizing, thus enhancing productivity and efficiency rates.
Can a WMS be integrated with financial software?
Integration with financial software is an essential feature of a robust WMS. It can help facilitate smoother operation between moving products in the warehouse and the invoices and statements needed for these items, streamlining the financial aspects of the business.
How can a WMS help generate various reports?
A well-designed WMS should offer analytics options for generating various reports necessary for business operations. These include delivery reports, shipping inventories, return documentation, and picking and packing lists.
Why is customization necessary in a WMS?
Customization in a WMS is essential because each business has unique operational needs. The best software options offer customization opportunities, allowing companies to adapt the software to their business requirements.
What are the benefits of a cloud-connected WMS?
A cloud-connected WMS allows for instant access to the system from anywhere. This feature benefits remote workers and those in different locations who need access to the system to complete their tasks.
